Question

The December 31, bank statement of Billy’s Hamburger just arrived from Safety Bank.
To prepare the bank reconciliation, you gather the following additional data:
a. The following cheques are outstanding on December 31:
Cheque No. Amount
800 ....... $415
802 ....... 75
806 ....... 34
809 ....... 123
810 ....... 228
811 ....... 39
b. On December 31, Billy’s Hamburger’s treasurer deposited $330, but this deposit does not appear on the bank statement.
c. The bank statement includes a $410 deduction for a cheque written by Jenny’s Jump Ropes rather than Billy's Hamburger. Billy’s Hamburger notified the bank of this bank error.
d. Billy’s Cash account shows a balance of $12,000 on December 31.
Requirements
1. Prepare the bank reconciliation for December 31.
2. Record the journal entries called for by the reconciliation. Include an explanation for each entry.


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  • CreatedJuly 08, 2015
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